My credit score dropped 40 points because of a $3 library late fee

I check my credit score every month like clockwork, but last Thursday I logged in and saw it dropped from 740 to 700. I panicked thinking someone stole my identity or something. Turns out a library in Austin sent a $3 late fee to a collections agency. They never called me or sent a warning, just straight to collections over pocket change. I paid it off same day and called the agency to ask for a goodwill deletion. The rep told me they see this all the time, small debts getting outsourced to collections without people knowing. Has anyone else had a tiny bill wreck their score like this?

2 comments

2 Comments

charles64023h ago

Funny you mention that, I actually read somewhere that smaller debts are way more likely to get sent to collections because companies figure people won't fight over a few bucks. Found an article that said medical bills under $50 have the highest rate of going to collections out of anything. A library fine is next level though, that's wild they wouldn't even send a warning letter first. Makes me wonder how many people out there have dinged credit over like, a forgotten Redbox rental or something.

the_leo1d ago

Ngl, I used to think late fees were no big deal until my $5 gas bill did the same thing.